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In re Xinergy Ltd. (Case No. 15-70444) 6/11/2015

Two Movants filed motions for relief from the automatic stay, alleging "cause" under 11 U.S.C. § 362(d) to lift the stay to continue to prosecute their sexual harassment claims against certain debtor defendants in West Virginia state court.  The Court analyzed the factors set forth in Robbins v. Robbins (In re Robbins), 964 F.2d 342 (4th Cir. 1992), and determined that all three factors supported lifting the stay for cause.  Accordingly, the Court granted both motions in part.  The Court lifted the automatic stay to allow the West Virginia state court actions to proceed so that the Movants can liquidate their claims against the debtor defendants, and allowed the Movants to seek recovery of their judgment up to the limits of insurance coverage and to file a proof of claim by the Bar Date and later amend the proof of claim for any amounts determined to be in excess of the available insurance coverage.

Date: 
Thursday, June 11, 2015
Category: 
Automatic Stay
Relief from Stay
Chapter: 
11